FOR INTERNAL CIRCULATION ONLY 30 MAY 2003 COMMON COUNTRY ASSESSMENT KAZAKHSTAN 2003 UNITED NATIONS 2 TABLE OF CONTENTS page 1. Section I 1.1. Introduction 5 1.2. International Development Cooperation 5 2. Section II 2.0.1. Kazakhstan and MDGs 7 2.0.2. Analytical Clusters 11 2.1. Analytical Cluster 1 – Poverty Reduction and Human Security 11 2.1.1. Economy 11 2.1.2. Poverty 12 2.1.3. Employment 14 2.1.4. Demography 15 2.1.5. Environment 16 2.1.6. Vulnerable Groups 17 2.1.7. Drugs and Crime 18 2.1.8. Underlying Causes 19 2.1.9. Key Challenges 20 2.2. Analytical Cluster 2 – Improving the Quality of Life 21 2.2.1. Health 21 2.2.1.1. Health Care System 21 2.2.1.2. Mortality 22 2.2.1.3. Morbidity 23 2.2.1.4. Nutritional Status 24 2.2.1.5. Access to Safe Water 24 2.2.1.6. Tuberculosis 24 2.2.1.7. Unhealthy Lifestyle 24 2.2.1.8. HIV/AIDS and STIs 25 2.2.2. Education and Culture 26 2.2.2.1. Access to Education 27 2.2.2.2. Quality of Education 27 2.2.2.3. Culture as a Tool for Development 28 2.2.3. Underlying Causes 28 2.2.4. Key challenges 29 2.3. Analytical Cluster 3-Governance and Participatory Development 30 2.3.1. Governance 30 2.3.2. Communication and Information 32 2.3.3. Gender Equality 33 2.3.4. Underlying Causes 34 2.3.5. Key challenges 35 2.4. Causality Analysis Framework 36 3. Section III 3.1. Strategic issues for Development Cooperation 37 3.2. Proposed Areas for Cooperation 39 4. Section IV – Indicator Framework 41 5. Section V-Sources 43 Annex 45 3 Abbreviations and Acronyms ADB Asian Development Bank ARI Acute Respiratory Infections CCA Common Country Assessment CEDAW Convention on the Elimination of All Forms of Discrimination against Women CIS Commonwealth of Independent States CRC Convention on the Rights of the Child DFID Department for International Development, UK DHS Demographic and Health Survey EMIS Education Management Information System EU European Union GDP Gross Domestic Product GTZ German Agency for Technical Cooperation HIV/AIDS Human Immunodeficiency Virus/Acquired Immunodeficiency Syndrome IDU Injecting Drug User HMIS Health Management Information System ICCPR International Covenant on Civil and Political Rights ICESCR International Covenant on Economic, Social and Cultural Rights ICT Information and Communication Technologies IDA Iron Deficiency Anemia IDD Iodine Deficiency Disorders IDUs Injecting Drug Users IEC materials Information, Education and Communication materials IFIs International Financial Institutions ILO International Labor Organization IMCI Integrated Management of Childhood Illnesses IMR Infant Mortality Rate ISA Air Pollution Indicator KZT Tenge (Kazakhstan national currency) MCH Maternal and Child Health MDGR Millennium Development Goals Report MDGs Millennium Development Goals MIS Management Information System MMR Maternal Mortality Ratio NGO Non-Governmental Organizations ODA Official Development Assistance PHC Primary Health Care SME Small and Medium Enterprises SPAs Specially Protected Areas STI Sexually Transmitted Infections SW Sex Workers TB Tuberculosis TWG Technical Working Group U5MR Under-five mortality Rate UN United Nations UNAIDS UN Joint Program on HIV/AIDS UNCT United Nations Country Team (UN Agencies resident in a country) UNDAF United Nations Development Assistance Framework UNDP United Nations Development Programme UNDPI United Nations Department for Public Information UNESCO United Nations Educational, Scientific and Cultural Organization UNFPA United Nations Fund for Population Activities UNGASS United Nations General Assembly Special Session UNHCR United Nations High Commission for Refugees UNICEF United Nations Children’s Fund UNIFEM United Nations Development Fund for Women UNODC United Nations Office for Drugs and Crime USAID United States Agency for International Development USD US Dollars USI Universal Salt Iodisation VAT Value Added Tax WB World Bank WHO World Health Organization WTO World Trade Organization 4 SECTION I 1.1. Introduction The main purpose of the present document, the second Common Country Assessment for Kazakhstan, is to analyze country’s development situation, identify key development issues and underlying causes. This analytical exercise lays foundation for the UNDAF, which will shape the UN development assistance to Kazakhstan in 2005-2009. Focusing primarily on the national development priorities and the Millennium Development Goals, the CCA draws largely on the Millennium Development Goals Report (MDGR) for Kazakhstan, which was produced jointly by the Government of Kazakhstan and the UN Country Team (UNCT) in 2002. While identifying key development challengers, the MDGR, however, was not meant to carry in-depth analysis and recommendations. Hence, this was undertaken through the CCA process, building on the MDGR data and assessment as well we extending coverage to governance and human rights areas, which the MDGs do not cover. The UN Country Team initiated the CCA process early in the fall of 2002 with the establishment of the CCA Inter-Agency Technical Working Group (TWG) to lead the process and facilitates involvement of all UNCT members, existing UN Theme Groups and local stakeholders. Comprised of representatives from 6 UN agencies (UNAIDS, UNDP, UNICEF, UNIFEM, UNFPA and WHO) and chaired by UNICEF Area Representative, the CCA group developed and proposed to the UNCT drafts of indicators framework, Work Plan and outline of the report. Following a consensus within the UNCT on the methodology and timetable of the process, each resident UN agency individually or in collaboration with other UNCT members jointly drafted the analytical chapters most relevant to their mandates and involved in the process their respective national partners from civil society, Government and donor community. The Working Group performed quality checks of all drafts and comments received from the Expanded UN Theme Groups (containing NGOs, donors, Government participants). Furthermore, there were discussions with IMF, World Bank and IOM along the way. The revised CCA was circulated through the Ministry of Foreign Affairs to all relevant national counterparts. In February 2003, the UNCT held a meeting with the Government on the draft CCA, which resulted in a constructive discussion of the draft and substantive inputs to it from the relevant agencies and ministries. In April 2003, a draft CCA was sent for review to the respective regional UN offices and upon the receipt of their feedback, all resident UN Agencies (UNAIDS, UNDP, UNDPI, UNESCO, UNFPA, UNHCR, UNICEF, UNIIFEM, UNODC, ILO and WHO) convened in a retreat to discuss the comments and the follow-up actions. The current version of the CCA benefited from the decisions of the retreat and the subsequent UNCT write-shops, and represents a consensus assessment by the UN Country Team of Kazazakhstan’s development situation. 1.2. International Cooperation From the first days of independence, Kazakhstan clarified its immediate priorities, which mostly derived from the process of transformation from a one-party system with a command economy to a democratic system with a market economy. Major donors gradually increased the volume of assistance every year and, in co-operation with the Government, designed their assistance programmes to focus on progressive development and democratic practices. However, the immense scope of the political, economic and social transformation facing the young nation placed a heavy burden on the citizens. The quality of life has deteriorated, particularly for vulnerable groups, children, women, the elderly, and especially the poor, whose numbers have increased. In 1997, the first year of economic stabilization in Kazakhstan, a national vision until 2030 was initiated with support from UNDP. Providing the basis for sustainable poverty-reducing growth over the long term, this strategy underlay the whole range of medium and short-term development programmes. The successful implementation of Kazakhstan 2030 requires significant correction of the growing macro- economic and structural imbalances and thus a more selective approach to attracting external assistance. The donors had to redesign their programmes in line with the national development priorities, rather than to their own as was the case earlier. Thus, in response to the evolving “transition” challenges, the UNCT has significantly expanded its intervention in such areas as social protection and human development, good governance, democracy and participation, and environmental protection. 5 As country ownership of development policies and country leadership in development programmes are essential for success, donor and international financial institutions are now working more closely with the national partners to ensure that their programs in Kazakhstan fit to local priorities and needs. In 2002, the official development assistance (ODA) to Kazakhstan amounted to USD 155 million, 71% of which was disbursed though the International Financial Institutions (IFIs), 22% - though the bilateral donors, 5% - through multilateral organisations and 2% - through international organisations 1. Loans accounted for 65% and technical assistance grants represented 35% of total ODA. Analysis of assistance by thematic focus illustrates that donors view Governance as a priority area for assistance. It accounts for nearly 46% of total allocations in 2002. Technical assistance in this field includes good governance, public administration and public sector management activities, human rights and empowerment of civil society, policy formulation and general